A Corporation owns 20% of C Corporation. C has current earnings and profits of $40,000. C distributed property with a basis of $65,000 and a Fair Market Value of $35,000 to A Corporation. The property is subject to a liability of $70,000. Question: What are the tax consequences to A and to the C Corporation?
A Corporation owns 20% of C Corporation. C has current earnings and profits of $40,000. C distributed property with a basis of $65,000 and a Fair Market Value of $35,000 to A Corporation. The property is subject to a liability of $70,000. Question: What are the tax consequences to A and to the C Corporation?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 42P
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT